The Book-keepers Forum (BKF)

Post Info TOPIC: VAT on exam fees


Forum Moderator & Expert

Status: Offline
Posts: 11878
Date:
VAT on exam fees


Hi Chris,

just had to change my original response in light of thinking a little more about paragraph 4.2 of notice 701/30

4.2 Commercial providers of education (other than tuition in English as a foreign language: EFL)

If the education is provided by one of the following (with a view to making and distributing profits) it is unlikely to be an eligible body:

  • tutorial college
  • computer training organisation
  • secretarial college
  • correspondence college; or
  • partnership

Considering the above then read :

7.2 Exempt supplies of examination services

Eligible body (see paragraph 4.2): the supplies of examination services are exempt.

Non-eligible body (see paragraph 4.2): the supplies are exempt if the person receiving the services is either:

  • an eligible body; or
  • an individual receiving education or vocational training that itself is not liable to VAT such as:
    - pupils of independent fee paying schools (as legally defined);
    - pupils of community, foundation or voluntary schools;
    - students of further education colleges;
    - trainees on government approved training schemes; and
    - employees receiving in-house training from their employers.

So, it would seem as though you are a non eligable body but if your students are classified as students of further eductation colleges then you would be exempt.

It's probably best that you read the whole notice. Here's a link :

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&propertyType=document&id=HMCE_CL_000117#P265_18684

HTH,

Shaun.



-- Edited by Shamus on Sunday 22nd of July 2012 09:38:06 PM

__________________

Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.



Member

Status: Offline
Posts: 5
Date:

I could do with some advice around VAT and exam fees. I work at a private training provider - and it also acts as an exam centre, we get invoiced for all the exams that take place by the examination body, and learners pay the fee to us for their exam before sitting it. How should this be treated from a VAT perspective? Are exam fees zero rated, exempt, or outside the scope of VAT? Thanks

__________________



Newbie

Status: Offline
Posts: 1
Date:

Hi

I work for a University. I book the exams for our candidates via the accrediting company. When they send the invoice, they do not charge VAT on the exams that we book. Does this mean that the candidates are also exempt from paying VAT?

I'm not very good at complex answers so please keep it as simple as possibe.

Thank you smile



__________________


Master Book-keeper

Status: Offline
Posts: 8646
Date:

Hi ??????

Why no name on your profile? Please add.

We don't recommend you rely on nor dig up old posts as legislation changes a lot.

Plus we always ask for an intro to tell us about your professional background, but would I be correct that you don't work in the accounts department?

What do your accounts department say about such matters?

Given any old body can seemingly call themselves a university these days, what is your status...an eligible body or not? Did you read the vat notice Shaun referred to in the old post you have commented on?

(Mr Moderator - Veis?)



-- Edited by Cheshire on Tuesday 24th of July 2018 05:05:48 PM

__________________

Joanne

Winner of Bookkeeper of the Year 2015, 2016 & 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Senior Member

Status: Offline
Posts: 292
Date:

A University will normally be an eligible body, so its supplies are exempt.
The other question (Sheridan) will need to check his Constitution and other governing documents, to ensure it is an eligible body.
(Sorry, VAT questions may be easy; VAT answers often are not!)

__________________


Master Book-keeper

Status: Offline
Posts: 8646
Date:

Hi Les

Liking the new logo!!!!



-- Edited by Cheshire on Tuesday 24th of July 2018 07:19:42 PM

__________________

Joanne

Winner of Bookkeeper of the Year 2015, 2016 & 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Senior Member

Status: Offline
Posts: 426
Date:

My reading into this was that the exam and invigilation are Exempt as per qualification the booking of the exam is not (see 7. Examination services
7.1 The meaning of the term examination services
mentioned above).
For example when I had students book IAB itemised the Exam cost and the invigilator showing the booking fee with VAT.
You will need to check the exam requirements though in case an invigilator is not required.

Here was my reply from HMRC VAT:
In order for your supply be considered exempt, it is important to first determine whether you supply what HMRC would regard as examination services. This can be achieved with reference to VAT Notice 701/30: Section 7.1: The meaning of the term examination services. Although there is no specific reference to invigilator services, I would like to highlight the term other services provided with a view to ensuring that educational and training standards are maintained. From my understanding it may be possible to describe invigilator services in these terms, but I would encourage careful consideration of the term and of the additional guidance provided in 701/30 Section 7.1 before determining the definition of your supply yourself.

If you decide the supply does qualify as examination services, you must then determine if your supply is made to an eligible body. If they meet the criteria provided in Section 4.3, it is likely they are an eligible body and your supply could be considered exempt. Should they fail to meet the criteria, I would encourage you to refer to sections 4.1 and 4.2 and review the guidance given for eligible and commercial educational bodies respectively and determine your VAT liability accordingly.

Finally, I would like to bring to your attention VAT Manual VATEDU45500 which states the following guidance: - All supplies of examination services by an eligible body are exempt from VAT. However examination services supplied by a non-eligible body are also exempt if either:
the recipient of the examination service is an eligible body; or
the recipient of the examination service is an individual receiving education or vocational training that itself is either exempt or non-business




__________________

Donna Curling - Complete Book-Keeping Ltd (CBKLtd) - 07939 101900

Payroll & bookkeeping solutions - info@completebookkeeping.co.uk

www.completebookkeeping.co.uk

IAB Training centre - Ringwood



Newbie

Status: Offline
Posts: 1
Date:

There has been a useful guidance on VAT on exams. While there is often a mis conception that exams are often felt to be part of education they do not attract vat.

The guidance here sums it up quite well.

https://www.theexamhouse.co.uk/blog/vat-on-exams



__________________
Woody
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  

2007-2019 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: info@bookcert.co.uk.

Privacy & Cookie Policy  About